Average Cash Flow Per Door In Phoenix Metro Area

Average Cash Flow Per Door In Phoenix Metro Area

Real Estate Agent · Phoenix, AZ · Member since 2016 · 738 posts · 1k+ votes

Hey Everyone! 

I'm writing this post for a few investor clients of mine, and wanted to see what the average cash-flow per door other investors in the Phoenix metro area (Scottsdale, Tempe, Gilbert, Glendale, Chandler, Mesa, Peoria, Surprise, etc.) were getting on their rental properties. 

Of course, the more details you share about the property the better, so here's a generic outline to make sure we get all the necessary info to evaluate what to expect:

  • Property Type: (Condo, Single Family House, Multifamily Property)
  • Total Doors:
  • Purchase Price:
  • Year Bought: (Buying at bottom of market obviously makes for more cashflow today)
  • Financing: (Cash purchase, financed with percentage down, lease option, etc.)
  • How You Found Property: (MLS, Off-market, Wholesaler, Foreclosure, REO, etc.)
  • Property & Neighborhood Rating: (A-F, 1 to 10, neighborhood quality and condition of property)
  • Net Cashflow Per Door:
  • Cap Rate, CoC, Appreciation, Etc.: (Any other metrics or ROI figures you think are important to the deal)

You can either answer in this format or write a paragraph or two including all the details. Figured this would help some beginners know what to expect and see what returns other investors are currently getting in the Phoenix market.

Let's see who has the highest net cashflow!

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Specialist · Paradise Valley, AZ · Member since 2018 · 3k+ posts · 2k+ votes
8y
Originally posted by @Wes Blackwell:

Hey Everyone! 

I'm writing this post for a few investor clients of mine, and wanted to see what the average cash-flow per door other investors in the Phoenix metro area (Scottsdale, Tempe, Gilbert, Glendale, Chandler, Mesa, Peoria, Surprise, etc.) were getting on their rental properties. 

Of course, the more details you share about the property the better, so here's a generic outline to make sure we get all the necessary info to evaluate what to expect:

  • Property Type: (Condo, Single Family House, Multifamily Property)
  • Total Doors:
  • Purchase Price:
  • Year Bought: (Buying at bottom of market obviously makes for more cashflow today)
  • Financing: (Cash purchase, financed with percentage down, lease option, etc.)
  • How You Found Property: (MLS, Off-market, Wholesaler, Foreclosure, REO, etc.)
  • Property & Neighborhood Rating: (A-F, 1 to 10, neighborhood quality and condition of property)
  • Net Cashflow Per Door:
  • Cap Rate, CoC, Appreciation, Etc.: (Any other metrics or ROI figures you think are important to the deal)

You can either answer in this format or write a paragraph or two including all the details. Figured this would help some beginners know what to expect and see what returns other investors are currently getting in the Phoenix market.

Let's see who has the highest net cashflow!

  Hi Wes, I was approached by an Investor who wanted to get into the game by learning Subject To. That is best done by doing a Joint Venture on the first couple. Here is how I recently did one with that new Investor. He put in the capital and I put in the expertise and the work. We split the profits 50/50 (all by written agreement of course) Here are the Spreadsheet numbers

The property is a 4 bed 2 bath with pool in Mesa AZ that I found "off market" and negotiated the Purchase & Sale Agreement for $180,000. ARV on it is about $225,000. I put down $15k and the seller took back a 2nd with an underlying loan of $145,000 that we took over. The roof needed to be replaced. Within a week I found a Tenant Buyer who put down $20,000 (which the investor and I split, that made the investor happy ;-) and the Tenant Buyer replaced the roof at his cost, not ours. Our payment on the underlying loan is $995 a month PITI and we have it out to the tenant Buyer for $1650 a month. So, monthly cash flow is about $655 - not a home run but decent.

See this reply in the discussion

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  • Rental Property Investor · Los Angeles · Member since 2019 · 284 posts · 184 votes
    6y

     I've done this for so long it's second nature. 

    Most people get hung up on Fix & Flip which is the riskiest highest taxed, or Buy & Hold and hope for $100 a month cash per door. I think that's a mistake, but to each his own.

    I average $20K that I get as a Down, and $500 per door cash flow on a $50k investment. There is no bank qualifying I need to do or worry about 25% down or debt ratios or any of that stuff.

    I keep $5k per house in reserves so that I can always make the underlying payment and cover emergencies. In the event of a turnover, I simply see to it that it is habitable and safe. Other than that, any rehab, maintenance, upgrades are entirely up to the Tenant Buyer or the the new Tenant Buyer.

    I never offer interest on the carryback. Interest rarely comes up and I simply write up the agreement.

    I find that I have a mix of self employed and W2 but my preference is self employed. Self employed tend to think like I think and they are more resilient to changes in the economy.

     Do you have any experience doing this in CA? 

    Edited: Nevermind.. I saw your post about this being difficult in CA. Im interested in doing a possible JV if you have anything so I can learn the mechanics of this strategy.

  • Member since 2019 · 5 posts · 0 votes
    6y

    Thank you Wes! I appreciate your feedback.

  • Member since 2019 · 5 posts · 0 votes
    6y

    Thank you Wes!!! I appreciate your feedback.

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